Critical Review on Cooperative Societies in Agricultural Development in India

Abstract

Cooperative Societies are grass root organization of group of people united with collective responsibilities to meet their common economic, social and cultural needs which run with philosophy of self-reliance and mutual help. It helps in agricultural development supporting critical inputs supply (seeds, fertilizer, pesticides, credit), storage facilities like Go downs, agro processing facilities and marketing the agro produce.  Since 1904, the cooperative moment took stardom and the five year plans and Government legislation have integrated them into the policies for self-reliant rural growth and development. Agricultural cooperative societies dealing with inputs and credit disbursement, processing cooperatives such as Sugar Cooperatives, Dairy cooperatives etc. flourished with their consumer products whereas KRIBHCO, IFFCO became successful large cooperatives in marketing their fertilizers to their farmer members and outsiders act as a business enterprise. Status of Primary Agricultural Cooperatives Societies (PACS) reveals 19% of total PACS potentially viable, 49% running in profit, 45% small farmers’ borrower from societies. Several challenges like lack of professionalism, lack of infrastructure, political interference, nepotism, unawareness of members, meager shareholding, overdependence on financing agencies for credit, poor recovery are hindering the sustainability of societies. Certain restructuring with policy intervention like reducing state control, increased professionalism, good governance, raising share capital, quality assurance with competitive product & service, multi-purpose support system, will act as vibrant social enterprise with public trust as Government sector initiative  in the locality converged with other agencies.